Buy Side Brokerage Services
NEO Business Advisors offers business brokerage services coupled with industry expertise to anyone considering buying a manufacturing, industrial B2B service, or distribution business. Services include business valuations, acquisition strategies, brokerage services and many other subjects related to the purchase of a business.
Buy a Business
Buying a business can be a complicated process, and finding the right business to meet your needs can be daunting. For this reason, buyers often benefit from working with a business broker to help them find the right company to meet their needs.
At NEO Business Advisors, we can help. While there is no such thing as the perfect business, a business broker knows the importance of finding the right fit, and they have the experience to help you find a business that will meet your needs, skills, and lifestyle.
Our 3 Step Process
Starting the process of buying a business can feel overwhelming. We make it as simple as possible with our 3-step buying process to ensure we find the right fit for you.
During the initial consultation we will get to know one another more. Learning about your education, background, personal interests and work history can help us determine the type of business that might be of interest to you and set you up for the best chance of success. We want the business you buy to provide you both financial success and an increased level of job satisfaction.
Identify Investment Criteria
The next step will be identifying your specific criteria for a business acquisition. This will include among other factors: industries that you are interested in, industries to avoid, geographic areas of interest, revenue requirements, cash flow requirements, funds available to invest, funding sources, and your timeframe for buying a business.
Buyer Rep Agreement
With your investment criteria in mind we can begin the search for business opportunities. This is where we formalize our relationship. We will execute a buyer representation agreement allowing us to work as your agent. As we review opportunities, we will continue to refine your investment criteria until we find the right opportunity for you. We represent you through the entire acquisition process.
Consider Whether Owning a Business is Right for You
As you begin the process of looking for a business to buy, it is important for you to keep in mind that buying a business is a major undertaking. Running your own company is more than a job, it is a lifestyle, and it is important that you be prepared for everything that entails including working long hours and making difficult decisions.
Before you throw yourself into the process of buying a business, you should consider whether business ownership is right for you and your family by asking yourself the following questions.
How long have you been thinking about buying a business?
The first thing you should ask yourself is how long you have been considering buying a business. While many people consider business ownership the American dream, this does not mean that business ownership is for everyone. The fact is that some people will look at businesses endlessly but do not have the courage to move forward. In fact, it has been suggested that the longer you look, the less likely you are to buy a business. If you have been uncertain if owning a business is a good choice, and you cannot seem to decide what to do, then business ownership may not be right for you.
How much are you willing to invest in a business?
The fact is that owning a business represents a serious financial investment, and oftentimes first-time business owners are not prepared for the amount of capital running a business takes. If you are not the type to take a risk, or you are not willing to invest the majority of your liquid assets in a business, then you may need to rethink owning your own business.
Do you need a guarantee?
You should also ask yourself if you are looking for a sure thing or a guarantee; if so, business ownership is not right for you. The fact is that even if you do your research and make all of the right choices, you cannot guarantee that a business is going to be successful. Even if a business was successful under the previous owner, subtle changes you make could affect business. Before investing in a business, you must understand that there are no guarantees that you will succeed.
Do you have your family's support?
Perhaps the most important thing to consider when deciding if business ownership is right for you is whether you have your family’s support. Considering how difficult and time-consuming it is to run a business, you need to make sure that your family, and especially your spouse, are behind you 100 percent. If you do not have your family’s complete support, you may struggle emotionally, which could affect your business.
Ultimately, if you think you have what it takes to own a business, you may never work for someone else again.
Finding the Right Business
Once you have decided that business ownership is right for you, it will be time to start researching potential businesses for sale. If you find a business that you think you are interested in buying, how will you know if that business is a good investment? Here are a few things that you should look for in a potential business investment.
Length of Operation
It is important when researching prospective businesses that you find out how long a company has been in business. While there may not be guarantees when buying a business, a company with a long track record has a good chance of future success. This long history means that they are well established in the area, and they likely have a loyal customer base, giving you a good place to start as you take over ownership. It is also a good sign if the current owner has owned the business for many years. Multiple owners may indicate a struggling business.
Reason for Selling
Of course, you should also try to find out why the current owner is selling. If an owner has been running a business for a couple of years and claims they want to retire, you should be suspicious. An owner's reason for selling can be a red flag indicating that something is wrong with the company. Good reasons for selling are a long-time owner looking to retire, an owner selling for health reasons, or an owner selling to relocate. Reasons that may be cause for concern are a short-term owner selling or an owner selling to pursue other business interests.
Understand the Financials
It is important that you take a good long look at a company’s books and financial records, as this can give you a better idea as to how the business is really doing, and whether it is a good investment. You may discover that the owner is actually selling due to a recent decline in business or the loss of a major customer. Look everything over carefully to see understand the business operations and see how the business has done over the years.
Of course, when buying a business there are no guarantees. You will ultimately have to take a leap of faith and make an offer if you believe a business may be a good fit.
Ready to Buy a Business?
Starting the process of buying your first business can feel overwhelming, and it is natural if you still have questions after reading the above information. Let us help you answer those questions.
Schedule a Call Today!
Click the Calendar Link below to schedule a FREE, No-Obligation, 20-minute consultation with an expert business broker today. We will discuss the buying process, your investment criteria, what to expect, and the facts about current business sales in your industry.
NEO Business Advisors, holds all conversations confidentially.
NEO Business Advisors specializes in manufacturing, industrial B2B service, and distribution businesses in Northeast Ohio.